IRF Projects Increase in Data-Driven Decisions & Delivery of Personalized Rewards
The widespread ability to use artificial intelligence to more quickly identify top performers and deliver personalized rewards appears to be on the verge of reality. The IRF's new study, "The Impact and Potential of Artificial Intelligence in Incentives, Rewards and Recognition," examines the tools and techniques that professionals in the incentives, rewards and recognition industry are using and developing to incorporate artificial intelligence into their program design.
"Artificial intelligence offers incentive program owners the tools to put the right reward in the hands of the right person at the right time," said Melissa Van Dyke, IRF president. "As artificial intelligence becomes more accessible and pervasive, incentives professionals will need to interpret powerful analytics and turn them into insights that can strengthen the effectiveness of their programs."
"The Impact and Potential of Artificial Intelligence in Incentives, Rewards and Recognition" explores how businesses large and small can build artificial intelligence into their incentives, rewards and recognition programs. The report addresses the issues a program owner should consider when beginning to incorporate artificial intelligence capabilities, including data consistency, using third-party software, hiring external expertise, launching pilot programs and developing a culture that fully supports this next level of data-driven decisions.
Incentives professionals are using data and artificial intelligence to tailor experiences to each person and to know precisely which rewards will work best under what circumstances for each individual. Innovations and insights featured in the report include:
- Organizations perform predictive analyses to know what behaviors lead to the outcomes they want, and then experiment with a variety of incentives to know which do the best job of encouraging those behaviors.
- When artificial intelligence was used to suggest a redemption category, credit card reward members who received targeted messages redeemed rewards in the recommended categories 70 percent of the time.
- Where travel rewards are concerned, artificial intelligence helps hotels understand and manage guest preferences at scale, for example, personalizing each traveler's experience right down to the flavors of coffee available and the way the furniture is organized in their room.